Interactive Brokers Group Announces 2012 Results

Reports Comprehensive Earnings Per Share of $0.92, Income before
Taxes of $527 Million on $1,131 Million in Net Revenues, and Earnings
Per Share on Net Income of $0.89

Declares Quarterly Dividend of $0.10 Per Share

January 15, 2013 04:01 PM Eastern Standard Time

GREENWICH, Conn.--(BUSINESS WIRE)--Interactive Brokers Group, Inc. (NASDAQ GS: IBKR) an automated global
electronic broker and market maker, today reported diluted earnings per
share on a comprehensive basis of $0.92 for the year ended December 31,
2012, compared to diluted earnings per share on a comprehensive basis of
$1.31 for 2011.

Reported results on a comprehensive basis reflect the GAAP convention
adopted in 2011 that requires the reporting of currency translation
results contained in Other Comprehensive Income as part of reportable
earnings.

On a non-comprehensive basis, which excludes the effect of changes in
the U.S. dollar value of the Company’s non-U.S. subsidiaries, the
Company reported diluted earnings per share on net income of $0.89 for
the year ended December 31, 2012, compared to diluted earnings per share
on net income of $1.37 for 2011.

Net revenues were $1,131 million and income before income taxes was $527
million for the year, compared to net revenues of $1,358 million and
income before income taxes of $741 million for 2011.

The Interactive Brokers Group, Inc. Board of Directors declared a
quarterly cash dividend of $0.10 per share. This dividend is payable on
March 14, 2013 to shareholders of record as of March 1, 2013.

Electronic Brokerage segment income before income taxes decreased 8%, to
$342 million, in 2012. Customer accounts grew 11% from the prior year
and customer equity increased 31% during 2012. Commissions and execution
fees decreased 10%, consistent with the subdued trading environment. Net
interest income grew 9% from the prior year. Pretax profit margin was
51% in 2012, down from 54% in 2011. Total DARTs(1) for
cleared and execution-only customers decreased 7% to 413,000 in 2012,
compared to 444,000 during 2011. Cleared DARTs were 384,000 in 2012, 6%
lower than in 2011.

Market Making

Market Making segment income before income taxes decreased 54%, to $189
million, in 2012. This decrease was driven by lower exchange volumes,
lower actual-to-implied volatility and a swing in currency translation
gains. In 2012, our currency diversification strategy negatively
impacted the income statement by $39 million, compared to an $11 million
gain in 2011. Including balance sheet effects, our currency strategy
resulted in a slightly smaller loss than last year. Currency translation
effects are reported as part of Trading Gains in the Market Making
segment. Pretax profit margin decreased to 41% in 2012 from 59% in 2011.
Market Making options contract volume decreased 9% in 2012.

Effects of Foreign Currency Diversification

As a global broker and market maker trading on exchanges around the
world and transacting in multiple currencies, we are exposed to
fluctuations in foreign exchange rates. We actively manage this exposure
by maintaining our net worth in GLOBALs, a basket of 16 currencies in
which we hold our equity. In 2012, this currency strategy decreased our
profits, as measured in U.S. dollars, as the U.S. dollar value of the
GLOBAL decreased by approximately 0.4%. The effects of our currency
strategy are reported as components of (1) Market Making Trading Gains
and (2) Other Comprehensive Income, described below.

Comprehensive Income

Reported results on a comprehensive basis reflect the Company’s adoption
of U.S. GAAP guidance (2) issued in June 2011 that requires
the presentation of a Statement of Comprehensive Income, replacing the
former Statement of Income. The Statement of Comprehensive Income
reports currency translation results that are a component of Other
Comprehensive Income (“OCI”) directly in this statement. Previously, OCI
was reported as a component of changes in Total Equity in the Statement
of Financial Condition.

(1) Daily average revenue trades (DARTs) are based on
customer orders.

(2) Accounting Standards Update 2011-05, Comprehensive Income.

Conference Call Information:

Interactive Brokers Group will hold a conference call with investors
today, January 15, 2013, at 4:30 p.m. ET to discuss its quarterly
results. Investors who would like to listen to the conference call live
should dial 877-324-1965 (U.S. domestic) and 631-291-4512
(international). The number should be dialed approximately ten minutes
prior to the start of the conference call. Ask for the “Interactive
Brokers Conference Call.”

The conference call will also be accessible simultaneously, and through
replays, as an audio webcast through the Investor Relations section of
the Interactive Brokers web site, www.interactivebrokers.com/ir.

About Interactive Brokers Group, Inc.:

Interactive Brokers Group, Inc., together with its subsidiaries, is an
automated global electronic broker that specializes in catering to
financial professionals by offering state-of-the-art trading technology,
superior execution capabilities, worldwide electronic access, and
sophisticated risk management tools at exceptionally low costs. The
brokerage trading platform utilizes the same innovative technology as
the Company’s market making business, which specializes in routing
orders and executing and processing trades in securities, futures,
foreign exchange instruments, bonds and funds on more than 100
electronic exchanges and trading venues around the world. As a market
maker, we provide liquidity at these marketplaces and, as a broker, we
provide professional traders and investors with electronic access to
stocks, options, futures, forex, bonds and mutual funds from a single IB
Universal AccountSM. Employing proprietary software on a
global communications network, Interactive Brokers is continuously
integrating its software with a growing number of exchanges and trading
venues into one automatically functioning, computerized platform that
requires minimal human intervention.

Cautionary Note Regarding Forward-Looking Statements:

The foregoing information contains certain forward-looking statements
that reflect the company's current views with respect to certain current
and future events and financial performance. These forward-looking
statements are and will be, as the case may be, subject to many risks,
uncertainties and factors relating to the company's operations and
business environment which may cause the company's actual results to be
materially different from any future results, expressed or implied, in
these forward-looking statements. Any forward-looking statements in this
release are based upon information available to the company on the date
of this release. The company does not undertake to publicly update or
revise its forward-looking statements even if experience or future
changes make it clear that any statements expressed or implied therein
will not be realized. Additional information on risk factors that could
potentially affect the company's financial results may be found in the
company's filings with the Securities and Exchange Commission.

INTERACTIVE BROKERS GROUP, INC. AND SUBSIDIARIESOPERATING
DATA

TRADE VOLUMES:

(in 000's, except %)

Brokerage

Market

Brokerage

Non

Avg. Trades

Making

%

Cleared

%

Cleared

%

Total

%

per U.S.

Period

Trades

Change

Trades

Change

Trades

Change

Trades

Change

Trading Day

2008

101,672

120,195

16,966

238,833

944

2009

93,550

-8

%

127,338

6

%

13,636

-20

%

234,524

-2

%

934

2010

75,169

-20

%

133,658

5

%

18,732

37

%

227,559

-3

%

905

2011

63,602

-15

%

160,567

20

%

19,187

2

%

243,356

7

%

968

2012

60,421

-5

%

150,000

-7

%

16,118

-16

%

226,540

-7

%

904

4Q2011

15,093

39,554

5,432

60,079

961

4Q2012

14,477

-4

%

37,300

-6

%

3,532

-35

%

55,309

-8

%

878

CONTRACT AND SHARE VOLUMES:

(in 000's, except %)

TOTAL

Options

%

Futures*

%

Stocks

%

Period

(contracts)

Change

(contracts)

Change

(shares)

Change

2008

757,732

108,984

55,845,428

2009

643,380

-15

%

82,345

-24

%

75,449,891

35

%

2010

678,856

6

%

96,193

17

%

84,469,874

12

%

2011

789,370

16

%

106,640

11

%

77,730,974

-8

%

2012

698,140

-12

%

98,801

-7

%

65,872,960

-15

%

4Q2011

203,566

26,655

16,012,605

4Q2012

159,048

-22

%

25,591

-4

%

17,278,459

8

%

MARKET MAKING

Options

%

Futures*

%

Stocks

%

Period

(contracts)

Change

(contracts)

Change

(shares)

Change

2008 **

514,629

21,544

26,008,433

2009 **

428,810

-17

%

15,122

-30

%

26,205,229

1

%

2010 **

435,184

1

%

15,371

2

%

19,165,000

-27

%

2011 **

503,053

16

%

15,519

1

%

11,788,769

-38

%

2012 **

457,384

-9

%

12,660

-18

%

9,339,465

-21

%

4Q2011 **

135,559

3,672

2,687,537

4Q2012 **

102,703

-24

%

3,203

-13

%

2,361,442

-12

%

BROKERAGE TOTAL

Options

%

Futures*

%

Stocks

%

Period

(contracts)

Change

(contracts)

Change

(shares)

Change

2008

243,103

87,440

29,836,995

2009

214,570

-12

%

67,223

-23

%

49,244,662

65

%

2010

243,672

14

%

80,822

20

%

65,304,874

33

%

2011

286,317

18

%

91,121

13

%

65,942,205

1

%

2012

240,756

-16

%

86,141

-5

%

56,533,495

-14

%

4Q2011

68,007

22,983

13,325,068

4Q2012

56,345

-17

%

22,388

-3

%

14,917,017

12

%

*

Includes options on futures

**

In Brazil, an equity option contract typically represents 1 share
of the underlying stock; however, the typical minimum trading
quantity is 100 contracts. To make a fair comparison to volume at
other exchanges, we have adopted a policy of reporting Brazilian
equity options contracts divided by their trading quantity of 100.